NamBrew’s ops profit barrel 35% fuller

Jo-Maré Duddy – Namibia Breweries (NBL) has reported an operational profit of more than N$612.6 million for the financial year ended 30 June 2021, an increase of nearly N$159.4 million of 35% more than its 2020 book-year.
The locally-listed giant recorded total revenue of about N$3.4 billion for the 12 months under review, up some N$13.6 million or 0.4% year-on-year (y/y).
The group’s total comprehensive income for the year attributable to equity holders came in at about N$377.98 million, jumping around N$114.4 million or 43% y/y.
Headline earnings per share (HEPS), a profitability gauge, rose by 41.9% y/y and totalled 178.2c.
In its results released on the Namibian Stock Exchange (NSX), NamBrew said its performance exceeded expectations “in a year characterised by muted economic activity, trade restrictions, curfews, disrupted supply chains, lockdown conditions and a third wave of the pandemic in Namibia towards the end of the financial year”.
“NBL has been astute in adapting the business and managing costs when volumes fluctuated over the past years, as a result of the Covid-19 pandemic. The ability to quickly recalibrate expenses to protect profitability when market conditions and demand curves change will continue to protect the sustainability of the business,” the group said.
It continued: “NBL is doing everything possible to support economic revival and helping Namibia to recover from the dire impact of the Covid-19 pandemic.”
HEINEKEN SA OFFER
Subsequent to year end, Heineken N.V. made an offer to acquire NBL’s 25% shareholding in Heineken South Africa Proprietary Limited. “Discussions are still ongoing and several aspects still need to be considered,” NamBrew said.
The potential transaction is subject to several conditions, one of which relates to NBL not making any distributions, including a dividend declaration to its shareholders in respect of the financial year ended 30 June 2021.
In light of this, the board has taken a decision not to declare a final dividend for the financial year ended 30 June 2021. In the event that discussions regarding the potential transaction are terminated, the NBL’s board intends to declare a final dividend in respect of the 2021 financial year, the group said.
NamBrew paid an interim dividend during May 2021 amounting to 56c per share, representing a 5.7% increase compared to the prior year interim dividend.